Europe's Banks Not as Healthy as Thought

LONDON—European banks plan to pay back €61 billion ($81 billion) of emergency central-bank loans they took out last year, a smaller-than-expected amount that highlights the continued fragile state of the Continent's financial system.

The planned repayments by 356 lenders come after banks a month ago paid back €137 billion of the cheap, three-year loans—a surprisingly large figure. But the size of the latest repayment, which was...